Birla Corp PBT drops 61% to Rs 85 cr in Q1 due to disruptions in operations

Birla Corporation recorded a 61.44 per cent drop in profit before tax to Rs 84.52 crore in the June quarter due to widespread disruptions in operations in key markets.

Revenues (including other income), at Rs 1,241 crore, declined 34.7 per cent year-on-year as sales by volume dropped by more than 33 per cent to 2.4 million tonnes. 

The operations of plants stood suspended for nearly the entire month of April and sales during the period were negligible. Though things started to move in May, it was only in the latter half of the month that operations normalised, the company said.

 

"With production across most plants gaining steam only in the first week of May, around seven of 13 weeks were available during the quarter. However, local lockdowns and restrictions continued to hobble operations," it further added. 

Cash profit and net profit for the quarter at Rs 172 crore and Rs 66 crore, respectively, were on account of a turnaround in end May and June. In the year ago period, however, cash profit stood at Rs 305 crore and net profit at Rs 141 crore.

The company said that while demand during rest of the year would be a function of how the lockdowns in various regions of the country pan out from time to time, expectations of gradual easing of lockdown in urban areas and resurgence in infrastructure activities with migrant workers returning to construction sites were indicative that the worst may be over for the industry.